If a Firm Can Offer Fringe Benefits Worth More Than

question 36

Multiple Choice

If a firm can offer fringe benefits worth more than one dollar for a one dollar reduction in wages:

• A)the wage-fringe isoprofit line will be upward-sloping
• B)the wage-fringe isoprofit line will have a slope less than one in absolute value
• C)the marginal rate of substitution between wages and fringe benefits will be greater than one at the wage-fringe optimum
• D)as a proportion of total compensation,fringe benefits will likely exceed one half

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Definitions:

Telemarketing Sales Rule

A federal regulation that sets standards for businesses using telemarketing strategies to ensure consumer protection.

Prize Promotion

A marketing strategy that offers awards or gifts to participants, often used to stimulate interest in a product or service.

Solicitation

The act of asking for or trying to obtain something from someone, often used in legal context to refer to the act of seeking to procure a person to commit a crime.

Face-To-Face Sales

A sales technique where products or services are sold directly to the customer in person.